Assessing the costs and benefits of climate change adaptation

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• For example, a replacement cost method (market approach) can be used for the agriculture sector

• Estimating the cost of inaction

• while a contingent valuation method (stated preference technique) may be more appropriate for the health sector

• hedonic pricing (revealed preference technique) may be more suitable for urban adaptation.

• or infrastructure projects such as major flood defence systems, choosing a time horizon that does not take into account major periodic maintenance and therefore excludes this significant cost may increase the BCR

• Makes clear distinction between adaptation-relevant spending and adaptation costs using ‘markers’ method;

• Is not easily replicable to other countries due to differences in structure of state accounts;

• Is a very complex method mobilising internal revenue services;

• Therefore, the costs and benefits should ideally be assessed at the programmes level of measures rather than at that of individual adaptive measure